With its high security and user-friendliness, biometrics technology is a game-changer for online banking. Banking transactions are made more secure, convenient, and time-efficient thanks to biometrics like fingerprint recognition, facial authentication, and voice recognition. Find the best Fintech App Development Company for your project.
Biometric Technology: What is It? Financial Technology’s Best Friend
Accurate identification of people using their unique physical or behavioral characteristics is the goal of biometrics. In other words, biometrics uses an individual’s physical characteristics—such as their face, voice, fingerprints, or heart rate—to verify their identity when they interact with a certain service.
These patterns are unique and perfect for concealing private activities like online banking. Fintechs are combating issues related to the anonymity of the internet and social media by implementing biometric technology solutions, which are user-friendly and functional in their day-to-day operations.
Fintech or financial sector companies operating online can meet the security and KYC requirements of the entire financial sector thanks to advancements in identifying individuals made possible by artificial intelligence, machine learning, and the development of recognition algorithms. Fintech App Development Company is what you need.
There are five potential applications for biometric technology in the banking sector
1. Improved safety for private and business information
It’s no secret that biometric technology is much more secure than standard usernames and passwords when protecting sensitive information. Hacker brute force attacks are a real danger, especially in the banking and finance sector; they can lead to the theft of extremely sensitive data or unauthorized access to online banking. Unlike a password, which can be cracked using brute force, live data is an essential part of a person’s body and, therefore, much more difficult to recreate. Furthermore, biometrics are considerably more resistant to social engineering than conventional usernames and passwords.
2. More efficient, less complicated, and safe
When calling your bank, have you ever been asked a seemingly never-ending series of security questions? In a matter of minutes, they’ll be able to verify your identification and provide the assistance you require. But thanks to biometrics, even something as simple as voice authentication can get instant access to this support, saving you and the bank time. You can skip the time-consuming step of entering a traditional password every time you use your online banking or banking app and instead have your identity verified in a fraction of a second. More importantly, no one can guess your password by watching as you type.
3. Access to sensitive financial information from a distance
No longer do you have to trek to a distant bank branch? Confirming your identification over the phone or online chat with biometrics is quick and easy. You don’t have to physically visit your bank or answer a series of security questions to gain access to your private financial data.
4. Strengthening the infrastructure protecting financial institutions
Biometrics has several applications in physical security, including deterring hackers from stealing your personal information. Compared to traditional access control methods, like keys and passwords, biometric authentication has many advantages. Banks and other institutions that store huge amounts of cash, gold, or other valuables can profit greatly from using biometrics instead of physical keys and passwords, which can be easily misplaced or forgotten. Unique human qualities are immune to these concerns because they cannot be stolen or copied (easily), unlike physical keys, which may be stolen or replicated, and passwords which may be gained through brute force or social engineering.
5. Method of payment innovation
By adding an extra layer of protection to the contactless payment process, biometric technology can be utilized instead of a payment cap altogether. This would also eliminate the need to use a keypad or remember a personal identification number.
Using biometrics for online banking: few examples
In the financial industry, replacing or bolstering the security of standard alphanumeric passwords with biometric authentication technologies is a step in the right direction toward protecting customer information. As a bonus, they may be used to verify the authenticity of items and services in a snap. Here are a few illustrations:
Among all biometric techniques, fingerprinting has the most history and widespread use. These forms make up our fingerprints; they define who we are together. Most modern smartphones include a fingerprint scanner, making it possible to use one for routine tasks like unlocking the device to make a purchase or logging into online banking.
2. Recognizable faces
It uses facial traits in the same way that human eyes do to recognize an individual. The image is collected using the device’s camera (a mobile phone, computer, or tablet, for example), and a mathematical pattern is generated to link it to a specific individual based on characteristics like as the distance between their eyes, the position of their nose, the size of their forehead, etc.
In digital banking, for instance, we may use our smartphones to open an account by sending an image of our identity card and a photo of ourselves for comparison.
3. Spoken-word Detection
Like fingerprint and facial recognition, this technology uses unique physical characteristics to verify the user’s identity. The key difference is that voice-related data, such as frequency, speed, cadence, and other characteristics, are considered throughout the identification verification process. Examples of its use in banking include telephone customer service.
Improved security, a more pleasant user experience, and faster transactions are just a few ways biometrics technology could revolutionize online banking. As biometric authentication grows, so do the difficulties and concerns that financial institutions face when using it. Biometrics technology is key to a new era of safe and efficient digital banking that will benefit clients and financial institutions. Find the best Fintech App Development Company for your next project.
Guest article written by:
Prashant Pujara is the CEO of MultiQoS Technologies., The Best Fintech App Development Company in USA where you can hire App developer for your business. He is in charge of the company’s commercial and delivery operations and strategic planning and strategy.
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